SHRY

SHRY targets large- and mid-cap US companies that provide their shareholders with returns through dividends, buybacks, and debt paydown. Selection begins with the index universe of US large- and mid-caps. The index excludes REITs and applies size and liquidity requirements, permitting only one security per issuer. Remaining securities are then screened to reflect and retain those with, over each of the trailing five years, positive free cash flow, positive total returned capital, and a ratio of the latter to the former (or Capacity) of under 150%. Securities must also have a shareholder yield of between 0.5% and 15% to be included. The top 50 securities by level of total returned capital are selected as final constituents and are weighted by their shareholder yield with 5% individual and 30% sector capping. The index is reconstituted and rebalanced quarterly. Prior to March 4, 2024, the fund was named First Trust Large Cap US Equity Select ETF, tickered RNLC, and tracked the Nasdaq Riskalyze US Large Cap Index.